What is the difference between mediation and arbitration?

Mediation and arbitration set out to achieve the same thing. In other words, you’re asking somebody who is a “neutral party” to resolve a dispute between two different people. The main difference between the two is in a mediation the parties can simply stop it anywhere during the process and walk away from it. Once you agree to arbitration, you have decided that I am going to stick with this even if I want to walk away, I have already agreed that this person or this panel is going to decide it, and I am going to be stuck with that decision.